Governments can accumulate debt while claiming balanced budgets because most budgets are prepared on a cash basis. This antiquated accounting method includes cash inflows, including loan proceeds as revenue, and outflows—in other words, only checks written.
We recommend cities adopt our model legislation which includes FACT-based budgeting and accounting, which stands for full accrual calculations and techniques (FACT). This technique provides more reliable and truthful budgeting and financial reporting documents.
To be knowledgeable participants in the fiscal policies of your city we believe that you deserve easy-to-understand, truthful, and transparent financial information from your government. Until that happens, we will provide this service for you through our reports.
If you stand for transparency and accountability in government finances please support our work to educate citizens and elected officials.
We can win this issue!
Thank you for your support.
In Truth,
Sheila
